The new update for the Ethereum blockchain, called The Merge, has been tested and is expected to go live soon. This update represents the joining of the existing execution layer of Ethereum with its proof-of-stake protocol.

The goal is to create a more efficient and scalable blockchain with a significantly smaller carbon footprint that can output more transactions per second (TPS). This update is one of the most important steps in creating a sustainable ecosystem for the platform, which is the reason behind the potential boost in price that is expected.

Ethereum 2.0 The Merge’

Overview of The Ethereum merge

The merge is a network upgrade. As the Ethereum code is not freely updateable, the project’s developers have to create a forked version of the network (ETH 2.0 and merge it with the existing network. It’s likely that this upgrade will have far-reaching implications for the cryptocurrency’s value and usability. In short, big changes are on the horizon for the world’s second-largest cryptocurrency.

PoW (proof of work) has been used to secure Ethereum’s network. However, PoW is a very energy-intensive process. As Ethereum has grown in popularity, so has the amount of energy required to power its network.

The merge will see Ethereum switch to a new consensus algorithm called proof of stake (PoS). With PoS, block validators will be chosen based on the number of coins they have staked on the network. This system is much more energy efficient than PoW, and it is hoped by the developers that it will help Ethereum scale to meet increasing demand. 

How will The Ethereum Merge Affect Price?

Ethereum is currently in the process of rolling out the upgrade, with the final test net merge going live recently. The merge is designed to improve Ethereum’s scalability and security, and it is expected to have a positive impact on the price of ETH.

eth price chart

While the full extent of the price potential boost remains to be seen, some analysts believe that it could lead to a significant increase in the value of Ethereum. In addition to the potential price increase, it is also expected to improve Ethereum’s liquidity and make it more accessible to potential investors.

Scalability and security

With Ethereum’s merge, the cryptocurrency is now more scalable than ever before. It will allow for a far greater throughput, which means that the Ethereum network will be able to handle more traffic.

This is a big improvement for Ethereum, as scalability has been one of the biggest issues plaguing the cryptocurrency. With the merge, Ethereum will be more prepared to handle large-scale applications and usage. In addition, it will also improve security, stability, and should reduce gas fees during times of load. As a result, Ethereum will become more usable than ever before.

How will Ethereum’s Merge Improve its Environmental Friendliness?

ETH merge will reduce carbon emissions

One of the key features of Merge is that it will significantly reduce Ethereum’s carbon footprint. It will be achieved by using less energy-intensive proof-of-work algorithms and by shifting to a more efficient proof-of-stake system. In addition, Merge will enable Ethereum to process transactions more quickly and efficiently. As a result, the overall carbon footprint of Ethereum will be reduced, making it an eco-friendlier option for those looking to invest in cryptocurrency.

All in all, for the true effects of the merge to be seen, it will have to get rolled out on the main net. However, things are looking promising and it’ll be exciting to see where ETH ends up once the upgrade is complete.

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By Sardar Arslan

Sardar Arslan is a highly respected figure in the blockchain and cryptocurrency space. A well-known author, investor, and public speaker, he is focused on emerging technologies such as blockchain and cryptocurrencies. He has been quoted in numerous publications on these topics, and his insights are sought by business leaders and entrepreneurs around the world.